What a financial guarantee for customs payments is
A financial guarantee is an obligation of a guarantor (a bank or an independent financial intermediary) to pay customs the amount of customs payments if the responsible person breaches their obligations. The forms and types of such security are defined by Article 309 of the Customs Code of Ukraine. In simple terms, the guarantee confirms that the budget will receive the duty, VAT and excise even if the cargo is not delivered or released as it should be.
Trans-Hope selects the form of security and arranges financial guarantees for legal entities and sole proprietors — at Kyiv customs posts, as well as in Odesa, Kharkiv and Dnipro.
When a financial guarantee is needed
A guarantee is required when customs needs confirmation that the payments will be paid. Typical cases:
- Transit — movement of goods across the customs territory without paying the charges up to the destination;
- Temporary import — equipment, samples or exhibition goods that are then taken back out;
- Deferral or instalment of the payment of customs charges;
- A dispute over value or code — when the cargo needs to be released before the final decision.
How the payments that the guarantee secures are formed is shown by the calculation of import customs payments.
Forms of security
Payment can be secured in two main forms, and the choice affects the price and the load on working capital.
| Form | Essence and features |
|---|---|
| Financial guarantee from a guarantor | A document-obligation of a bank or financial intermediary; working capital is not frozen |
| Cash deposit | Depositing funds into the customs account; returned after the obligations are fulfilled |
| When it suits | A guarantee — for regular operations; a deposit — for a one-off shipment |
Types of financial guarantees
By coverage, guarantees are divided into two types.
- Individual (one-time) — a written obligation in paper or electronic form for the amount of payments for one declaration, one transit operation, one control document or one movement operation;
- Multiple-time — secures payment for several declarations or documents, convenient for regular shipments.
The guarantee in common transit and the NCTS system
Since 1 October 2022 Ukraine has been a party to the Convention on a common transit procedure. Movements are cleared through the New Computerised Transit System (NCTS) under the T1 transit declaration. An important advantage: the movement runs under a single financial guarantee valid across all countries party to the Convention — there is no need to arrange separate security at each border. Related multimodal schemes are covered by intermodal transportation.
How to arrange a financial guarantee
The procedure depends on the form, but the general logic is the same.
How to arrange a financial guarantee for customs payments
The procedure for arranging security for customs payments, for a legal entity.
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We determine the amountWe calculate the payments by the UKT ZED code and regime that need to be secured.
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We choose the formWe select a guarantee from a guarantor or a cash deposit for the task.
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We prepare the documentsWe arrange the guarantee with the guarantor or the deposit payment.
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We register it with customsWe submit the security to the system during declaration processing.
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We carry out the operationWe accompany the transit or release under the guarantee.
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We close the guaranteeAfter the obligations are fulfilled the guarantee is closed and the deposit is returned.
Cost and what it depends on
The cost of security depends on the amount of customs payments to be covered, the form of security and the term. With a bank guarantee the fee is the guarantor's tariff (a percentage of the amount for the term); with a cash deposit it is the temporary withdrawal of the amount from turnover. A multiple-time guarantee for regular operations is usually more cost-effective than a one-off security for each shipment.
Advantages of a financial guarantee
- No need to freeze working capital for the amount of payments — with a bank guarantee;
- Faster transit and release of the cargo;
- A single guarantee for the whole route across NCTS countries;
- The ability to release the cargo before a dispute over value or code is resolved.
Common difficulties
- Insufficient amount — the guarantee does not cover all the payments; we calculate the amount precisely in advance;
- Expired term — the guarantee ended before the operation was completed; we control the deadlines;
- Route or delivery-deadline mismatch — in transit; we accompany the delivery to the destination;
- Delay in returning the deposit — we prepare the documents for timely closure.
Complex operations are handled by a customs broker — with full support.
Questions and answers
Which is more cost-effective — a bank guarantee or a cash deposit?
Will the cash deposit be returned?
Is a guarantee needed for every shipment?
Who can be a guarantor?
How long is the guarantee valid in transit?
Financial guarantees with Trans-Hope
Trans-Hope has worked in foreign trade since 2009 and helps legal entities with securing customs payments: we calculate the amount, select the form (a guarantor's guarantee or a cash deposit), arrange the security and accompany the transit or release at customs posts in Kyiv, Odesa, Kharkiv and Dnipro. To get a quote, send the details of the cargo, the regime and the route.
